EURUSD UPDATE MON JUL 18 2011 4:00 PM EST
Hello
In the videos below I illustrate the anatomy of an intraday eurusd trade I made today where I was stopped out. I don't want you to get the idea that I never make mistakes. Even though I talk a lot about operators vs retail traders I don't want you to get the impression that I'm saying that's why 95% of retail traders lose money.
The operators are like any predators, they are opportunists. If we don't put ourselves in a compromising position they have no opportunity. Most of the time, before the ops make their move, we have an indication that we should step aside. But for reasons more related to psychology than lack of knowledge, we stick in a trade when we know there are danger signs all around.
This was one of those trades for me. For me, these trades usually come when I get cocky after a string of successful trades and begin to think I'm kind of invincible. lol...Some of you know exactly what I mean. But anyway, we should always know the reason a trade goes bad The exact reason it went bad. That usually has to do with what we loath. Being honest with ourselves by not blaming someone else...Operators or otherwise.
In my back yard there are lots of rabbits. The rabbits are hunted by ferrets. Sometimes I sit at my window and watch the predator vs prey action play out. Most of the time all the rabbits escape. The rabbit that does not escape is the rabbit that did not run when it was supposed too. When all the other rabbits get out of dodge because they smell ferret. There is usually one or two that don't want to stop feeding, and so, for whatever reason, maybe they are hungrier than the other rabbits cause they ran yesterday and missed a meal. Maybe they think they are quicker than the ferret. My point is that we traders can be exactly like that...Stay in trades too long for the same reason the rabbits do.
The rabbit may hate the ferret but it does not blame the ferret for catching it, if that makes any sense to you...
Thus, operators, like ferrets, are a natural part of the ecosystem. Like ferrets keep the rabbit population from becoming too large so that they eat up all the food, operators perform the same function for the markets. If everyone made money the markets would collapse upon themselves and no one could feed...
